The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 3240.00 with a target of 3600.00 – 3800.00. A buy signal: the price holds above 3240.00. Stop Loss: below 3190.00, Take Profit: 3600.00 – 3800.00.
- Alternative scenario: Breakout and consolidation below the level of 3240.00 will allow the pair to continue declining to the levels of 3120.00 – 2950.00. A sell signal: the level of 3240.00 is broken to the downside. Stop Loss: above 3280, Take Profit: 3120.00 – 2950.00.
Main Scenario
Consider long positions from corrections above the level of 3240.00 with a target of 3600.00 – 3800.00.
Alternative Scenario
Breakout and consolidation below the level of 3240.00 will allow the pair to continue declining to the levels of 3120.00 – 2950.00.
Analysis
The ascending fifth wave of larger degree 5 is presumably developing on the weekly chart, with wave (3) of 5 forming as its part. The third wave of smaller degree 3 of (3) appears to continue developing on the daily chart. As its part, wave iii of 3 is formed, and a local correction is completed as wave iv of 3. Wave v of 3 is developing on the H4 time frame, with wave (i) of v formed and a local correction presumably completed in the form of wave (ii) of v. If the presumption is correct, XAU/USD will continue to rise to the levels of 3600.00 – 3800.00. The level of 3240.00 is critical in this scenario, as a breakout will enable the pair to continue declining to 3120.00 – 2950.00
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of XAUUSD in real time mode
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